Second Quarter 2026
Filed Aug 6, 2026Second-quarter 2026 GAAP net earnings were $825 million, while adjusted earnings were $883 million.
GAAP net earnings increased 37.7% year over year to $825 million, but adjusted earnings declined 7.7% to $883 million, total revenues declined 1.0%, and total net earned premiums declined 6.3%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Gross premiumsGAAP | $3,364 million | – | – |
| Assumed (ceded) premiumsGAAP | $(112) million | – | – |
| Total net earned premiumsGAAP | $3,252 million | – | (6.3) % |
| Net investment incomeGAAP | $984 million | – | (9.0) |
| Net investment gains (losses)GAAP | $(153) million | – | – |
| Other incomeGAAP | $34 million | – | – |
| Total revenuesGAAP | $4,117 million | – | (1.0) |
| Incurred claims - directGAAP | $2,160 million | – | – |
| Incurred claims - assumed (ceded)GAAP | $(61) million | – | – |
| Increase in FPB - directGAAP | $(183) million | – | – |
| Increase in FPB - assumed (ceded)GAAP | $(18) million | – | – |
| Total net benefits and claims, excluding reserve remeasurementGAAP | $1,898 million | – | – |
| Reserve remeasurement (gain) lossGAAP | $(46) million | – | – |
| Total net benefits and claimsGAAP | $1,852 million | – | (7.9) |
| Amortization of DACGAAP | $218 million | – | – |
| Insurance commissionsGAAP | $239 million | – | – |
| Insurance expensesGAAP | $749 million | – | – |
| Interest expenseGAAP | $64 million | – | – |
| Total acquisition and operating expensesGAAP | $1,270 million | – | (4.4) |
| Total benefits and expensesGAAP | $3,122 million | – | (6.5) |
| Pretax earningsGAAP | $995 million | – | – |
| Income tax expense (benefit)GAAP | $170 million | – | – |
| Net earningsGAAP | $825 million | – | 37.7 % |
| Effective Tax rateGAAP | 17.0 % | – | – |
| Net earnings per share of common stock - basicGAAP | $1.64 per share | – | 46.4 |
| Net earnings per share of common stock - dilutedGAAP | $1.63 per share | – | 46.8 |
| Aflac Japan pretax adjusted earningsnon-GAAP | $741 million | – | (6.2) % |
| Aflac U.S. pretax adjusted earningsnon-GAAP | $370 million | – | (4.6) |
| Corporate and other pretax adjusted earningsnon-GAAP | $(10) million | – | – |
| Pretax adjusted earningsnon-GAAP | $1,101 million | – | (8.1) |
| Income taxesnon-GAAP | $218 million | – | (9.5) |
| Adjusted earningsnon-GAAP | $883 million | – | (7.7) |
| Adjusted net investment gains (losses)non-GAAP | $(106) million | – | – |
| Other and non-recurring income (loss)non-GAAP | — | – | – |
| Income tax benefit (expense) on items excluded from adjusted earningsnon-GAAP | $48 million | – | – |
| Adjusted earnings per share - basicnon-GAAP | $1.75 per share | – | (1.7) % |
| Adjusted earnings per share - dilutednon-GAAP | $1.75 per share | – | (1.7) |
Capital returns
- 8,521 shares purchased QTD (In Thousands).
- 502,257 ending shares outstanding (In Thousands).
- 505,578 QTD weighted average diluted shares (In Thousands).
What drove it
- Total net earned premiums declined 6.3% to $3,252 million.
- Total net benefits and claims declined 7.9% to $1,852 million.
- Total acquisition and operating expenses declined 4.4% to $1,270 million.
- GAAP net investment gains (losses) were $(153) million, compared with $(421) million.
- The effective tax rate was 17.0%, compared with 27.0%.
Concerns
- Adjusted earnings declined 7.7% to $883 million and adjusted diluted earnings per share declined 1.7% to $1.75 per share.
- Net investment income declined 9.0% to $984 million.
- Aflac Japan pretax adjusted earnings declined 6.2% to $741 million.
- Aflac U.S. pretax adjusted earnings declined 4.6% to $370 million.
- Corporate and other pretax adjusted earnings were $(10) million, compared with $20 million.
What to watch
- Total net earned premiums and gross premiums.
- Net investment income and net investment gains (losses).
- Aflac Japan and Aflac U.S. pretax adjusted earnings.
- Benefits and claims trends, including reserve remeasurement.
- Cash and cash equivalents and notes payable.
Balance sheet and cash flow
- Cash and cash equivalents were $6,120 million as of June 30, 2026, compared with $6,965 million as of June 30, 2025.
- Total investments and cash were $103,003 million as of June 30, 2026, compared with $111,769 million as of June 30, 2025.
- Total assets were $115,961 million as of June 30, 2026, compared with $124,736 million as of June 30, 2025.
- Notes payable were $8,729 million as of June 30, 2026, compared with $8,933 million as of June 30, 2025.
- Total policy liabilities were $64,348 million as of June 30, 2026, compared with $78,904 million as of June 30, 2025.
- Total liabilities were $85,649 million as of June 30, 2026, compared with $97,536 million as of June 30, 2025.
Analysis
Aflac reported second-quarter 2026 GAAP net earnings of $825 million, up 37.7% from $599 million. Diluted GAAP earnings per share were $1.63, up 46.8% from $1.11. The GAAP result included net investment losses of $(153) million, compared with $(421) million in the prior-year quarter. Adjusted net investment gains (losses) were $(106) million, compared with $(377) million.
Underlying adjusted results moved in the opposite direction. Adjusted earnings declined 7.7% to $883 million, while adjusted diluted earnings per share declined 1.7% to $1.75. Pretax adjusted earnings declined 8.1% to $1,101 million. Aflac Japan pretax adjusted earnings declined 6.2% to $741 million and Aflac U.S. pretax adjusted earnings declined 4.6% to $370 million.
Reported revenue was $4,117 million, down 1.0%, as total net earned premiums declined 6.3% to $3,252 million and net investment income declined 9.0% to $984 million. Total benefits and expenses declined 6.5% to $3,122 million. Total net benefits and claims declined 7.9% to $1,852 million, while total acquisition and operating expenses declined 4.4% to $1,270 million.
The effective tax rate was 17.0%, compared with 27.0%. On the balance sheet, cash and cash equivalents were $6,120 million and notes payable were $8,729 million at June 30, 2026. The company reported 8,521 shares purchased QTD, with ending shares outstanding of 502,257, in thousands.
No forward guidance, management commentary, dividend amount, repurchase dollar amount, operating cash flow, or free cash flow was included in the supplied filing text. The main reported items to monitor are premium trends, investment income, the adjusted earnings performance of Aflac Japan and Aflac U.S., and the relationship between GAAP earnings and adjusted results.
Not in the filing
stated, not guessed- Forward guidance
- Previous-period outlook for guidance comparison
- Segment revenue
- Gross margin
- Operating margin
- Operating cash flow
- Free cash flow
- Dividend amount
- Share repurchase dollar amount
- Total debt beyond notes payable
- Management commentary
- Named executive quotes
- Complete balance-sheet presentation beyond the supplied truncated filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.